Going Short on the President

President Obama will speak at noon about the fiscal cliff's impact on the middle class. I expect another attempt to browbeat Republicans into an agreement without offering any new concessions. I don't expect that to be market friendly, so I am adding ProShares UltraShort S&P 500 (SDS) as a trade into the news.

Frankly, I'd rather be trading individual stocks, but there isn't much life in the market right now. Traders are handcuffed by the fiscal-cliff debate and there are few pockets of momentum. Breadth is slightly positive, but sectors aren't doing anything of interest.

One new Shark technical buy I posted this morning is Walter Investment Management (WAC), a mortgage-service provider that recently won the auction for ResCap accounts. The numbers are very impressive, with expected earnings of $2.77 per share in 2012 and an 89% increase to $5.23 per share next year. The stock sells with a trailing price-to-earnings ratio of just 15. Keefe Bruyette & Woods upgraded the stock to Outperform today with a price target of $55. I'm looking to average in slowly.